Question : Commercial banks are active participants in which market?
Option 1: Money market
Option 2: Capital market
Option 3: Forex market
Option 4: Housing market
Correct Answer: Money market
Solution : The correct answer is (a) Money market.
Commercial banks are active participants in the money market. The money market is a segment of the financial market where short-term borrowing and lending of funds occur. Commercial banks play a significant role in the money market by lending and borrowing funds for short durations.Commercial banks' involvement in the money market allows them to manage their liquidity, earn short-term interest income, and meet the short-term financing needs of their customers.
Question : Which market is primarily used for raising short-term funds to meet working capital requirements?
Option 4: Real estate market
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile